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Which Future for the Hurunui? Combining Choice Analysis with Stakeholder Consultation

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  • Dan Marsh

    ()
    (University of Waikato)

  • Yvonne Phillips

    ()
    (University of Waikato)

Abstract

The future of the Hurunui River and its catchment has been hotly contested between those who seek to store and/or divert water from the river in order to increase agricultural production and those who would like to see the river undeveloped and the quality of natural resources in the river and catchment improved. The Canterbury Regional Council wished to develop an approach to manage catchment nutrient loads across the region in order to achieve the objectives of its Natural Resources Regional Plan (NRRP) for water quality and aquatic habitats. Our approach, combining stakeholder consultation with choice analysis, was developed and tested in the Hurunui catchment in 2010-2011. The policy objective of the choice experiment was to describe and quantify the preferences of Canterbury Region residents with respect to existing conditions (the status quo) and potential future land use and water quality scenarios for the catchment. It was envisaged that this quantitative information on preferences across the region would be used by policy makers at the same time as they considered the outcomes of the stakeholder deliberative process. At the conclusion of the consultation process there was ‘general acceptance’ of a future development strategy for the Hurunui catchment that would maintain water quality in the main river at 2005-2009 levels while improving the tributaries to 1990-1995 water quality. Results from the choice experiment are broadly supportive of this approach. Canterbury region residents would require substantial compensation (mean $244-$315 per household per year) before they would accept a decline in water quality in the main river or in the tributaries. Willingness to pay for improvements in the main river is lower with a mean of $25-$33 per household per year.

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File URL: ftp://mngt.waikato.ac.nz/RePEc/wai/econwp/1217.pdf
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Bibliographic Info

Paper provided by University of Waikato, Department of Economics in its series Working Papers in Economics with number 12/17.

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Length: 23 pages
Date of creation: 21 Dec 2012
Date of revision:
Handle: RePEc:wai:econwp:12/17

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Keywords: choice experiment; scale factor; error variance; water quality; New Zealand;

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References

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  1. Marsh, Dan & Phillips, Yvonne, 2012. "Difficult Choices: What Influences the Error Variance in a Choice Experiment," 2012 Conference, August 31, 2012, Nelson, New Zealand 139651, New Zealand Agricultural and Resource Economics Society.
  2. Hanemann, W Michael, 1991. "Willingness to Pay and Willingness to Accept: How Much Can They Differ?," American Economic Review, American Economic Association, vol. 81(3), pages 635-47, June.
  3. Horowitz, John K. & McConnell, Kenneth E., 2002. "A Review of WTA/WTP Studies," Journal of Environmental Economics and Management, Elsevier, vol. 44(3), pages 426-447, November.
  4. Ferrini, Silvia & Scarpa, Riccardo, 2007. "Designs with a priori information for nonmarket valuation with choice experiments: A Monte Carlo study," Journal of Environmental Economics and Management, Elsevier, vol. 53(3), pages 342-363, May.
  5. Boxall, Peter C. & Adamowicz, Wiktor L. & Swait, Joffre & Williams, Michael & Louviere, Jordan, 1996. "A comparison of stated preference methods for environmental valuation," Ecological Economics, Elsevier, vol. 18(3), pages 243-253, September.
  6. Alejandro Caparr�s & José L. Oviedo & Pablo Campos, 2008. "Would You Choose Your Preferred Option? Comparing Choice and Recoded Ranking Experiments," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(3), pages 843-855.
  7. Anderson, Johan & Vadnjal, Dan & Uhlin, Hans-Erik, 2000. "Moral dimensions of the WTA-WTP disparity: an experimental examination," Ecological Economics, Elsevier, vol. 32(1), pages 153-162, January.
  8. Hausman, Jerry A. & Ruud, Paul A., 1987. "Specifying and testing econometric models for rank-ordered data," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 83-104.
  9. Rowe, Robert D. & D'Arge, Ralph C. & Brookshire, David S., 1980. "An experiment on the economic value of visibility," Journal of Environmental Economics and Management, Elsevier, vol. 7(1), pages 1-19, March.
  10. Willig, Robert D, 1976. "Consumer's Surplus without Apology," American Economic Review, American Economic Association, vol. 66(4), pages 589-97, September.
  11. Dan Marsh & Lena Mkwara & Riccardo Scarpa, 2011. "Do Respondents’ Perceptions of the Status Quo Matter in Non-Market Valuation with Choice Experiments? An Application to New Zealand Freshwater Streams," Sustainability, MDPI, Open Access Journal, vol. 3(9), pages 1593-1615, September.
  12. Riccardo Scarpa & Timothy J. Gilbride & Danny Campbell & David A. Hensher, 2009. "Modelling attribute non-attendance in choice experiments for rural landscape valuation," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 36(2), pages 151-174, June.
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